CVD Equipment — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for the three months ended September 30, 2026, was $1.6 million, a 72.1% decrease from $5.7 million in the prior-year quarter.
• Revenue for the nine months ended September 30, 2026, was $5.4 million, compared to $15.4 million in the prior-year period.
• Gross margin for the quarter was 9.2%, down from 32.0% in the prior-year quarter, driven by lower system revenue and fixed manufacturing costs on a reduced base.
• Net loss from continuing operations for the quarter was $2.1 million ($0.30 per share), compared to net income of $0.1 million ($0.02 per share) in the prior-year quarter.
• Net income from discontinued operations for the quarter was $0.6 million ($0.09 per share), primarily due to a change in the estimate of income taxes payable related to the SDC sale.
• Net income for the nine months ended September 30, 2026, was $9.4 million, including a $14.1 million net gain on the sale of SDC.
• Cash and cash equivalents increased to $23.5 million at September 30, 2026, from $8.7 million at December 31, 2025.
• Stockholders' equity increased to $34.6 million at September 30, 2026, from $24.7 million at December 31, 2025.
• The company reported no outstanding debt at the end of the quarter.
• Restructuring charges for the quarter were $0.8 million, consisting of severance costs, asset impairments, and legal/board-related costs.

Business Segments and Product Lines:

• The company will no longer pursue new system orders for its CVD Equipment business.
• Workforce was reduced to align with completing the remaining equipment backlog, satisfying warranty obligations, and supporting the ongoing spare parts, quartz, and services business.
• Bookings for the quarter were $0.7 million, down from $1.0 million in the third quarter of 2025, due to lower system orders.
• Backlog was $3.0 million at September 30, 2026, compared to $3.9 million at June 30, 2026.
• The company continues to support existing customer projects and supplies quartz components, replacement parts, process support, and related services.

Other Key Points:

• CBRE, Inc. has been engaged to market the company's owned real estate properties in Central Islip and Saugerties, New York, for sale.
• The company is not holding an investor conference call this quarter and expects to hold calls only in connection with significant corporate developments.
• The Acting CEO transition is noted as a factor in the forward-looking statements regarding risks.
• The company is evaluating strategic alternatives for its go-forward business strategy.